Loan Modification
You may have been hearing more and more about this and with good reason. As millions of homeowners have become saddled with adjustable rate mortgages and no longer have the ability to refinance into a new loan, there may be only one solution for these stressed borrowers: loan modification. What does it mean? It is when the lender of the note modifies the existing mortgage to make it more reasonable, the interest rate, term, balance, late fee maybe modified by the lender. Until recently this was only done for delinquent borrowers, however with such extraordinary circumstances it will now be used before borrowers reach this stage. This is often the right choice for borrowers looking to avoid foreclosure.
A Fresh Start
Loan Modification helps borrowers change their note and have a chance to start over as accounts are brought to date right away.By modifying your loan you change your interest rate and payments to change to a fixed rate that will be more practical for borrowers. You won't have to pay new closing costs and fees, but if you refinance you will be responsible for the normal closing costs, taxes and fees.
Lenders Negotiate
When borrowers have financial difficulties and don't have alternative financing options, lenders are open to negotiate. We will demonstrate to lenders why it is in their interest to work out a new arrangement with you. Lenders will often be willing to reduce the interest rate, monthly payment amounts and / or loan term to allow you to avoid foreclosure.
If you would like to see if we can help then click here to apply now
Frequently Asked Questions
What We Do?
As the nations premier Loan Workout conduit we are a team of experts in Consumer Protection, Truth In Lending, and Real Estate Lending practice and law. A loan modification or loan work out is a change in the terms of a loan, usually the interest rate and/or term, in response to the borrower(s) inability to make the payments under the terms of the Note or evidence provided proving fraud, predatory lending and/or violations within disclosures or loan documents provided to you, the client. The Agency shall work to identify a multitude of violations within your Loan Documentation provided to you at the closing table and at times we will utilize a current hardship, thereby, creating leverage for negotiation with your Lender’s legal department.
Why We Do It?
In the last year, lender guidelines have drastically changed and the ability to qualify for a mortgage has become increasingly difficult. This has caused many home owners to be unable to refinance out of their Adjustable Rate Mortgages and due to the adjustment of their payment they are now struggling to make their payments or may even be on the path to Foreclosure.
What Is a Hardship?
A hardship is any situation in your life that is currently difficult or unpleasant, often because you do not have enough money. A hardship may arise from a variety of situations other such as a divorce, medical expenses, a death in the family, termination of employment, current economic conditions, an unforeseen emergency, etc.
Will a Loan Modification hurt my credit?
No, a loan modification alone will not affect your credit, however, if you are currently 30 /60 / 90 or more days late on your mortgage that will cause your credit to be damaged.
I was told I needed to be late on my mortgage in order to be considered for a modification. Is this true?
No, you do not need to be late on your mortgage. Only companies inexperienced in the Loan Modification process will require this, in addition, at times lenders may require this if individual clients try to modify their loans directly with them.
I currently have a prepayment penalty; will
I have to pay this?
No prepayment penalty will be assessed at the time of modification.
Do I need to qualify in regards to Credit
Score and Income proof?
No, there are no qualifying factors. However, Pay Stubs and Bank Statements and other financial information will be collected as it helps us determine what future payment you can comfortably afford.
Can I modify my 1st & 2nd at the same
time?
Yes, this is actually highly recommended as the rates on the 2nd’s are usually higher than the 1st.
Do Lenders want to Foreclose on my house?
No! It is very common
for lenders to lose money on foreclosures. This is worse if they are
forced to claim ownership of a property. In areas hit hardest by
foreclosures, lenders lose even more. This is good news for you since
lenders and their investors do not want to lose on your loan. But
unfortunately you are often just a number in their spreadsheet. While
you can negotiate on your own behalf often times you may hear that
there is nothing you can do to modify your loan, however this isn't
always true. By using our expertise we can often help turn no into yes
How long does the Loan Modification process
take?
The process currently take anywhere from about 30 to 75 days depending
on a variety of factors. As we are dealing with the lenders Legal Department and much of
our process is based on Federal Law the lender must work within a time-line defined
by law. Upon receipt of all the documentation requested within this welcome
package the Agency will analyze the package to determine if a Loan
Workout is the proper solution for your current situation. Once this determination is complete
and all parties have agreed to move forward a Forensic Loan Audit is performed on your
current loan documents as well as complete review of your financial situation. This
process, normally completed within 7 to 10 days, can be longer if any missing documents
are left out of the initial package. Once the audit is complete a case is developed for your
modification and is sent to the lender. From this point your lender must take what ever
steps necessary to complete the process within 60 business days.
If you would like to see if we can help then click here to apply now